Top Stock Recommendations: Dharmesh Shah of ICICI Securities suggests buying Tata Power and Oil India tomorrow

According to reports, traders stated that continuing outflows of overseas funds, a falling rupee, and rising planetary crude prices further weighed connected sentiments. 

Sectoral indices were mixed bag; the Nifty Consumer Durables scale finished 1.72% higher than the Nifty Financial Services index, which ended 0.89% lower. India VIX recovered arsenic good astatine 10.92 levels.

On Friday, the 30-share BSE Sensex closed astatine 73,730.16 level, down 609.28 points, oregon 0.82%. The NSE Nifty 50 ended astatine 22,419.95, down 150.40 points, oregon 0.67%.

Senior Vice President of Master Capital Services Ltd, Arvinder Singh Nanda said that the cardinal home and global economic statistic volition person an interaction connected the market's trajectory. The Fed Interest Rate Decision, the China Manufacturing (PMI), the Euro Zone (CPI) (YoY), the India Federal Fiscal Deficit (Mar) and Infrastructure Output (YoY) (Mar), the Company Q4FY24 results, and the ISM Manufacturing Prices (Apr) volition beryllium successful absorption adjacent week. 

Also Read: Stock marketplace today: Sensex, Nifty 50 drawback 5-day winning streak; mid, smallcaps deed grounds highs

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

The buying request from the little set of the rising transmission helped the index  retrieve past week’s losses and settee the week supra the 22,400 mark. In the process, broader marketplace Nifty Midcap and Small Cap indices staged a beardown rebound and clocked a caller all-time high. The cardinal constituent to item is that home organization investors' (DII’s) person shown spot by absorbing the overseas organization investors (FII’s) sell-off seen during the period of April-24 portion discounting a big of planetary volatility owing to geo-political concerns, said Dharmesh Shah. 

"We judge Indian equities stay connected a beardown footing, which makes america reiterate our affirmative stance with the Nifty 50 people of 23,400 by the wide predetermination result with beardown enactment astatine 21,700," added Shah. 

In the upcoming truncated week, Dharmesh Shah expects the Nifty 50 to situation beingness highs of 22,800. The enactment of a higher highest and trough signifies buying request astatine an elevated enactment basal that makes Shah revise contiguous enactment upward astatine 22,100. Thus, immoderate impermanent breather should beryllium utilised to accumulate prime banal successful the ongoing Q4 earning season, explained Shah. His constructive bias is validated by the pursuing observations:

A) Breadth continued to amended arsenic the percent of stocks supra the 50-day EMA strengthened from 55% to 75%, highlighting broader marketplace participation.

B) The India Vix (which gauges marketplace sentiments) has plunged ~20% successful the past week, suggesting receding marketplace hazard amongst marketplace participants, which successful crook bodes good for resolving the supra ongoing consolidation successful the Nifty 50. 

C) Indian equities person a affirmative correlation with their planetary peers. The US marketplace is forming a higher basal supra its all-time high, portion the FTSE has clocked a caller all-time precocious that bodes good for the continuation of the uptrend successful the home market. 

Also Read: Oil settles higher connected Middle East proviso woes, US ostentation information limits gains; Brent astatine $89/bbl

Bank Nifty Outlook

Index staged a decent betterment from the little set of the rising transmission coincided with a 100-day ema amid oversold readings. Going ahead, we expect Bank Nifty to resoluteness higher and situation the all-time precocious of 49,000. The Bank Nifty/Nifty 50 comparative show ratio illustration indicates beardown outperformance from Bank Nifty implicit the adjacent 3–4 months. Since 2008, successful each six instances wherever the comparative ratio enactment turned up from a rhythm low, Bank Nifty has outperformed by 5% implicit a three-four-month period. In the process, beardown enactment is placed astatine 47,300.

Top Stock Recommendations:

Buy Tata Power Co Ltd successful the scope of ₹428–438 for the people of ₹485 with a halt nonaccomplishment of ₹398.

Buy Oil India Ltd successful the scope of ₹620–632 for the people of ₹730 with a halt nonaccomplishment of ₹580. 

Also Read: Nifty 50 May series: 4 stocks wherever investors tin parkland their money; bash you own?

Disclaimer: The Research Analyst oregon his relatives oregon I-Sec bash not person actual/beneficial ownership of 1% oregon much securities of the taxable company, astatine the extremity of 26/04/2024 (preceding date) oregon person nary different fiscal involvement and bash not person immoderate worldly struggle of interest.

The views and recommendations supra are those of idiosyncratic analysts, experts and broking companies, not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 28 Apr 2024, 11:27 AM IST